Ohio Opportunity Zone Credit Program
The Ohio Opportunity Zone Tax Credit Program provides an Ohio tax credit to invest in projects in economically distressed areas located in Ohio. The Ohio-designated parcels are the same as the federal Opportunity Zone Tax Credit Program and the Ohio credit is in addition to any benefits received for federal tax purposes. Taxpayers are eligible to receive a nonrefundable tax credit against the Ohio individual income tax equal to 10% of the amount of funds invested by the Ohio qualified opportunity fund (QOF) in qualified opportunity zone (QOZ) property. A taxpayer may invest in multiple Ohio QOFs and receive tax credits totaling up to $1 million dollars during the 2020–2021 biennium period. For example, if a taxpayer invests $10 million in QOZ property, the taxpayer will be eligible for a credit of $1 million.
Taxpayers are eligible to receive a nonrefundable tax credit against the Ohio individual income tax equal to 10% of the amount of funds invested by the Ohio qualified opportunity fund (QOF) in qualified opportunity zone (QOZ) property.
The tax credit may be claimed for the taxpayer’s qualifying taxable year or the next consecutive taxable year and may be carried forward for up to five years.
The credits are awarded on a first-come, first-served basis. Applications for investments made in calendar year 2019 are due Jan. 31, 2020.
Ohio TechCred Program
Ohio’s TechCred Program provides reimbursements of up to $2,000 per employee credential for expenses incurred in assisting current or prospective employees learn new technology skills. The maximum credit per employer is $30,000. The current application period ends Jan. 31, 2020. Approvals are merit based and aren’t made on a first-come, first-served basis.
Ohio’s TechCred Program provides reimbursements of up to $2,000 per employee credential for expenses incurred in assisting current or prospective employees learn new technology skills.
The TechCred program has approved credentials in the following areas:
- Business technology
- Construction technology
- Healthcare technology
- Information technology
- IoT & cybersecurity
- Manufacturing technology
- Military & smart transportation
A complete list of eligible credentials that qualify for the program is available on the TechCred website.
While the list of qualifying credentials is extensive, employers may also request a new credential to qualify based on meeting all of the following program requirements:
- Short-term meaning the credential can be completed in 12 months or less and is less than 30 credit hours or 900 clock hours.
- Industry-recognized meaning the credential is accepted by employers within the industry as a recognized credential for hiring or advancement purposes.
- Technology-focused meaning credentials demonstrate the competencies necessary to succeed in an occupation that utilizes technology. Technology credentials rely on science, technology, engineering and/or math-related education, as well as technical skills, to benefit an employer dependent on the development, deployment, and investment in new and emerging technology, including software development, advanced manufacturing, data analytics, cybersecurity, computer hardware and design, military applications, and other emerging fields.
Tuition, lab fees, manuals, textbooks, and certification costs are eligible expenses for the program, and one reimbursement certification is available per employee. Eligible employees must be Ohio residents and includes current and prospective employees. So long as an individual has been hired when the request for reimbursement is submitted, the business will be reimbursed for the credential costs. All credentials must be completed by the grant expiration date provided on the agreement to be eligible for reimbursement.
If you have questions about the Ohio Opportunity Zone Tax Credit or TechCred Programs or other state and local tax issues, please contact us directly.